Jim Cramer's 10 Things to Watch in the Stock Market on Thursday

1. THE S&P 500 And Nasdaqboth on a seven-session winning streak, appeared to open lower after record closes Wednesday. The June consumer price index hit its lowest inflation level in more than three years. Stock futures were initially higher on the CPI numbers but then fell on some concerns about deflation.
2. Nick Timiraos, the Wall Street Journal's Fed Whisperer makes it clear Central Bank Chairman Jerome Powell is changing course and saying it is time to start cutting rates. Reducing inflation without a significant slowdown is the first priority. Powell is close to accomplishing his mission.
3. Are shareholders of Costco get a parting gift from Rich Galanti, who stepped down as CFO but is still helping with the transition? The Club name has decided to raise membership fees for the first time since 2017. This is a second catalyst for the stock that we have been waiting for since the special dividend was announced in late 2023. Yes, I will renew my membership for one of the best deals on the planet. This is a good sign on inflation: Costco waited until it thought it was not a problem. As for June sales, Costco reported a 7.4% increase to $24.48 billion. E-commerce sales climbed more than 18%. Many of the price target increases point to strong baseline comparisons and higher membership fees.
4. PepsiCo The company reported mixed quarterly numbers due to weaker demand in North America for its beverages and snacks. The company also lowered its forecast. The Quaker recall was a drag. The numbers were led by Pepsi, not Frito Lay. It could be a frugal consumer, or Novo Nordisk's GLP-1 weight-loss drug and the name Club Eli Lilly, or both.
5. The company of Chill and Maggiano Brinker The stock continues to wreak havoc. That’s because others have raised their prices too much. CEO Kevin Hochman told me on “Mad Money” that brands create value every day. Morgan Stanley cut its price target on McDonald’s to $300 a share from $312, citing weak near-term trends. Analysts said the potential failure is “well understood.”
6. Delta Earnings per share were in line with quarterly expectations, but revenue was lower. The airline maintained its full-year guidance. Will the Olympics be affected by travelers avoiding Paris this summer? Still, people want to go to Europe to see Taylor Swift in concert.
7. Wells Fargo has increased its Advanced microsystems $205 per share price target versus $190 and kept its Overweight Buy rating. People like AMD's deepening of internal open source software. For the Club, we own Nvidia And Broadcomwhich saw its price target raised from $1,650 to $2,400 per share at Rosenblatt. Analysts maintained their buy rating on Broadcom. Rosenblatt sees upside to Broadcom’s recently raised fiscal 2024 sales target. Nvidia and five other Club tech stocks are leading the market, and we think they should.
8. Despite the setbacks, Pfizer Pfizer is continuing to develop its once-daily weight-loss pill. The drugmaker plans additional early-stage trials in the second half of the year. Pfizer is trying to break into the GLP-1 market dominated by Novo NordiskOzempic and Wegovy and Elie LillyMounjaro and Zepbound.
9. Piper Sandler raises her Him and her Price target increases from $16 to $18 per share. TD Cowen increases from $15 to $25. I really like this one on GLP-1s. Compounded formulations are temporarily allowed due to branded drug shortages. Hims & Hers said it will eventually offer the brands when the shortage is over.
10. Piper Sandler cut her Estee Lauder Club's stock price target was lowered to $108 per share from $141, but the rating remains neutral. Analysts say the biggest risk is whether a cautious consumer is willing to pay for luxury. Club's stock has performed very poorly in China.

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